Question

2. Being an intelligent manager of an electric utility company, you decide to take advantage of...

2. Being an intelligent manager of an electric utility company, you decide to take advantage of what’s called capacity utilization rates provided by the Federal Reserve to help you decide if more or less spending is a wise course to take. This month’s capacity utilization rate applicable to your company is 82%. Based on this information, what will you specifically advise the company to do in order to either expand or contract capacity? Explain why.

Homework Answers

Answer #1

Ans.

Capacity utilization rate is extent or level to which the productive capacity of firm is being used in generation of goods and services. It is expressed in percentage by dividing actual output to potential output multiplied by 100.

This month capacity utilisation rate of company is 82% which suggests that company's production costs decrease as output increase. This capacity can be expanded till 95% to 100% as this indicates efficient operation management. By expanding capacity company can operate at efficiency i.e by illumination of cost structure in short and long term. The company can increase production without incurring expensive overhead costs such as purchasing new equipment or machines.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Instructions: Read the ethical scenario below and decide what course of action Will should take. In...
Instructions: Read the ethical scenario below and decide what course of action Will should take. In reaching a recommendation make sure you identify the ethical dilemma, offer two to three recommendations for solving it, and then select your best choice of action. Put yourself in Will’s shoes and decide what a business student should do in this situation. Use a minimum of two outside sources (the textbook can be one of them). Please make sure to type your report and...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT